The auto industry is cited in the text as an industry in which firms are constantly seeking to differentiate their products. Tesla is focused on product differentiation more than on cost. In fact, the high end nature of specialized tech gadgets makes them appear more valuable to those who can’t afford them, creating demand for when the products become more affordable. A good example of this is Apple in how expensive their products are when first introduced and then become more affordable as newer, higher end gadgets are introduced.

A good example of this is when Elon Musk introduced the Cybertruck, a vehicle design that I don’t foresee a lot of conservative truck drivers adopting anytime soon.